The Congress on Monday accused Securities and Exchange Board of India (Sebi) chairman Madhabi Puri Buch of continuing to "draw salary" from her previous company, a leading private bank, after being nominated as a full-time member of the market regulator.
Congress lawmaker Pawan Khera said Buch got close to Rs 16 crore from the ICICI group while working for the market regulator. Buch declined to comment on the new charges when he spoke at a CII event in Mumbai on Monday. However, she stated in her speech that "even if I utter the word REITs, I am alleged to have a conflict of interest."
Khera, who made the claims at a news conference, has demanded an answer from Buch and Prime Minister Narendra Modi, who is involved in the Sebi chief's selection.
Buch takes over as Sebi chairwoman in March 2022. Previously, she was a full-time member of the regulator from April 2017 until October 2021. Prior to joining Sebi, she worked for ICICI Bank and its subsidiaries for over two and a half decades.
Buch also serves as the first private-sector chairwoman. The opposition party has accused Buch of "drawing a salary" from her former business while holding the Sebi job, which it claims violates the laws. Citing a news story, Khera said Buch "changed regulations" to benefit the ICICI group.
He said that one of these "favours" was the simplified delisting procedures for ICICI Securities. The Congress further claimed that the Sebi chair continued to make judgments and be involved in situations involving the ICICI group while "earning income from the group". He inquired if this revenue was reported and taken into consideration prior to her appointment as head of the capital market regulator.
Khera also questioned if ICICI Bank disclosed the ESOPs provided to Buch in accordance with the Listing Obligations and Disclosure Requirements (LODR) Regulations, which are mandatory for listed corporations. Last month, New York-based short seller Hindenburg Research questioned Buch's integrity in investigating the Adani Group, stating that she owned stakes in offshore organizations used to siphon off cash and influence stock prices.
The short seller also claimed that Sebi's regulation amendments favored REITs since Buch's spouse, Dhaval Buch, was a Blackstone advisor. Buch and her husband, Dhaval Buch, made statements disputing the claims. She also stated that they had made disclosures and listed associated businesses on her recusal list.
In a statement published following the Hindenburg charges, the duo stated that they "accumulated their savings through their salaries, bonuses, and stock options." Furthermore, the duo highlighted, "Insinuations about net worth and investments based on Madhabi's current government salary are malicious and motivated."
